Tax and HYIPs for US residents

For the US residents, reporting HYIP income in taxes is a real issue. Exactly how to report the HYIP income is an open ended question and there are is no definite answer to it. Some people do not report their HYIP incomes thinking it will send up red flags for audit. But it is a safe practice to report income. How to report an HYIP, however, is the real question that needs some discussion and thought.

It is not prudent to report HYIP income as HYIP income unless you are sure that it is US. Securities and Exchange Commission (SEC) approved. If it is approved, then it is a normal investment and not an HYIP. HYIP income can be reported as Self Employment, gambling, gold investments etc.

The taxable income for one tax year is what coming out of e-gold/e-bullion/Liberty Reserve or similar accounts minus what you put in them. If you did not have any profit for one year, then it is possible to claim loss. It is important to remember to deduct all other fees both ways such as bank wire charges, e-bullion/e-gold charges as the cost of income.

Some people report HYIP earning as capital gain on investments just because they can offset their winnings against losses in the 1040 form, while others report it as gambling income. If the income is big, then forming an LLC might be the way to go.

Just keep in mind that is not a financial advice and I am seeking for answers myself. It is just the information I gathered from forums and discussions. I found it helpful, may be you will find it helpful too. Please leave a comment if you have anything to add. Constructive criticism or pointing out mistakes always helps. It might be a good idea to discuss these matters with a certified public accountant.

(Pictures taken from: www.whittiertrust.com and www.cpashah.com)

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Investing in HYIPs with gold? a good idea?

Take a good look at the value of gold now, wait for an hour and check it again. They will not be the same. With the gold value fluctuating this much, I do not understand why people invest in HYIPs with gold?

With the increasing world demand for gold, falling dollar value, increasing oil price and various other reasons, the value of gold is on the rise. This makes investing in gold a great idea. But investing with gold might not be the smartest thing to do.

How can anyone possibly use gold for transaction when gold’s value changes almost every hour? Whatever I invest in E-Gold or E-bullion might not have the same value an hour from now.

What if I intend to invest $1000 and I backed it up as gold. After an hour the price might drop to $900 since $100 drop is not so uncommon anymore when it comes to gold value. Similarly, $100 rises in an hour is not very uncommon either. And that is 10% return on investment which I am willing to bet is more return than any legitimate HYIP that you will come across can provide.

(picture taken from : www.monex.com)

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Template change

Hello everyone, Lately I have been a bit busy with a college project and I have not been able to spend too much time on the blog. Well, I am back with a new template. Last template was all white, and I felt my blog needed more color (colour for you english folks) .

I hope you all like it. More posts (informative ones) are coming soon. Thanks for wasting a minute of your life reading this almost pointless post.

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Ferrum Forex group LLC Payment reports.

After posting the screen shots of my other programs that I listed in my "paying programs". This was the only program that was overlooked. So, I decided today to post a few screen shots regarding Ferrum Forex Group (FFG) .

I have already posted my personal review on this program. The screenshots below are only parts of my entire payment period.






Overall, I am pretty happy with the payments of this program.

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Alcoholding Inc payment reports.

Ever since I posted the screen shots of the payments I received. I Have been wondering if I should do it for all the programs that pay me. It will throw in some credibility to my posts. In the shady world of HYIPs, credibility is the precious word. From now on there will screenshots of my test results on programs that are on the paying list.

Here goes the screen shots of my earnings ( well atleast a part of it) for Alcoholding INc


Nothing is quite complete in the world of HYIP till your withdraw requests go through and you have a balance in your e-currency account.

Here goes the screenshot of the processed withdraw requests.



They were fast and reliable, and hence the top ranked program in my list. With that said, there is no way of guaranteeing that you will earn money in HYIPs. There is a chance that you might lose all your investment. Invest judiciously.

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